Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A statement of changes in working capital assists us in locating where such changes took place. In the first example we try to demonstrate the increase or decrease in particular items and then try to categorize them in terms of decrease and increase in working capital. As working capital is measured through subtracting current liabilities from current assets, any raise in current assets and any reduce in current liabilities demonstrates a raises in working capital. Likewise, reduce in current assets and a raise in current liabilities represent a decrease in working capital.
The statement of changes in working capital as Table no.1 explains that the raises in current assets amounted to Rs. 52 million, a main part of the increase occurring out of cash, inventory and receivable. Reduce in working capital came about mainly from the increased accounts payable, advances taken from customers and taxes payable. Total amount of reduce in working capital resulting from raise in current liabilities amounted to Rs. 25 million, hence showing a net raise in working capital of Rs. 27 million.
TOLLS INDIA LTD.
Statement of changes in Working Capital for the year ending December 31, 2000
(Rs. In Millions)
Dec. 31
2003
2002
Increase
(Decrease)
Working Capital
Increase Decrease
Current Assets
Cash
19.05
10.87
8.18
Accounts receivable
32.25
20.28
11.97
Loans and advances
42.58
33.82
8.76
Other current assets
17.20
15.93
1.27
Inventory
120.92
99.10
21.82
Total
232.00
180.00
52.00
Current Liabilities &
Provisions
Acceptances
4.74
3.02
1.72
Accounts payable
27.16
18.75
8.41
Advances against sales
26.60
6.32
Other liabilities
8.86
7.95
0.91
Interest accrued
2.64
2.00
0.64
Taxes payable
25.55
20.45
5.10
Proposed dividend
2.25
-
Bonus payable
3.40
2.35
1.05
Other provisions
3.80
2.95
0.85
105.00
80.00
25.00
127.00
100.00
27.00
Increasing Working Capital
i. Identify the organization ii. Identify the stakeholders iii. Give the major requirements for the IT application iv. Reflect on how difficult it was to do the require
list and explain all the procedures of material control
CMM is an internationally recognized standard for calculating the maturity of an organization's software development processes and has become the primary benchmark multinational co
describe the procedures involved in payroll labour cost accounting
Tracking Direct Materials Jack keeps full records of the material released to each job. When Donnie gathered up light bulbs, tape, breakers, wire, and wire nuts on the morning
WHAT IS LABOUR COST?
The following information is provided to you concerning Lydia Ltd as at 30 June 2012. Assume a company tax rate of 30%. (i) The balance of rent received in advance in the balan
Overhead Absorption Absorption of overheads refers to the sharing out of overhead costs to the some cost centers such used the overheads. This is utilized when the overheads c
Assumptions of CVP This chapter has given information on how to apply CVP for the business analysis. Most of this analysis is keyed to the model of how profitability is impacte
You want to save $40,000 for a down payment on a new home. You expect to save $7,000 per year, be in the 25% tax bracket and hope to earn 4% on your investments. How long (in mon
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd